The Telegraph, which in the past year has not been shy when it comes to publishing critical and often questionable stories about cycling, has once again been accused of promoting a “nasty, culture wars” agenda against cyclists, after the newspaper’s head of money claimed this morning that “middle-aged men in Lycra earning six figures” were “shamelessly” exploiting the government’s Cycle to Work scheme to buy “fancy new toys”.
In the article, titled ‘Rich cyclists are getting brand new bikes – courtesy of you, the taxpayer’, Ben Wilkinson argued that since the Cycle to Work scheme was revamped six years ago, enabling employers to offer bikes worth over £1,000, it is now being “routinely abused by wealthy cyclists who have no intention of using their expensive gift from the taxpayer on their commute”.
Introduced in 1999, the UK government’s Cycle to Work employee benefit scheme offers a tax-friendly initiative which enables people to buy a bike and cycling accessories through salary sacrifice.
Effectively, the initiatives see employees ‘loan’ a bike from their employer tax-free, initially for a year. That loan can then be extended, with employees able to eventually buy the bike at a nominal price, calculated factoring in the bike’s depreciated value over time.
During its first 20 years, tax-free purchases using Cycle to Work were nominally capped at £1,000 (though some providers did not impose this limit and former cycling minister Michael Ellis pointed out that the £1,000 ceiling never officially existed for larger employers registered with the Financial Conduct Authority).
Nevertheless, in 2019, the Conservative government announced a revamp of the Cycle to Work scheme, making it easier for bikes worth over £1,000 to be purchased using the initiative, as part of a drive to “increase the use of e-bikes to help tackle congestion, speed up commutes, and cut travel costs”.
Cyclists in London talking in cycle lane (credit: Simon MacMichael)
However, six years on, the Telegraph’s Wilkinson has called for another rethink of the scheme, arguing that “commuters simply do not need a bike worth more than £1,000”.
“The next time you see a Lycra-clad cyclist tearing through a red light, consider this: their hugely expensive bicycle was likely paid for by you, the taxpayer,” Wilkinson’s column begins.
But despite that provocative opening paragraph, the journalist maintained that “this isn’t an anti-cyclist article”.
“I own three bikes, none of which the taxpayer helped pay for. The world would be a better, and healthier place, if more of us rode bicycles,” he continued.
“Cyclists should stick to road rules like anyone else, and any suggestion that cyclists should pay road tax is moronic. Roads are maintained using money from all taxes, and vehicle excise duty is levied on emissions.
“However, there are gaping holes in this tax break that mean your money is not being spent as it should be.”
> Telegraph journalists told "check your research" after front page claims cyclists hit 52mph chasing London Strava segments... despite that being faster than Olympic track cyclists
According to Wilkinson, since the cap was lifted in 2019, the cost to taxpayers has been £615m, the writer also noting a “spike in demand” for the scheme in 2020 and 2021, which he links to increased leisure time during the Covid-era lockdowns.
While admitting that more expensive e-bikes should be subject to a higher ceiling, Wilkinson argued: “There can be no justification for asking the taxpayer to give a dentist earning £200,000 a £4,200 discount on a £10,000 bike. My commuter bike cost £300 and has saved me thousands in Tube fares.”
He continued: “I suspect Whitehall and the City are full of top earners who have exploited this scheme to buy an expensive bike that they would not dare to bring into London for fear of it being stolen.
“And there’s no doubt that some have used it to drop their incomes below £100,000 so they can still continue to qualify for tax-free childcare.”
> “Unfair” Cycle to Work scheme “problems” need to be addressed, admits government minister
The financial journalist also pointed to a report published by cycling and walking charity Sustrans in September, which found that 38 per cent of people in the UK on low incomes or in unemployment (or around 1.9 million people) are currently priced out of buying a bike due to the high costs and lack of discounts available.
Sustrans noted that, in its current guise, Cycle to Work excludes anyone who would earn less than the minimum wage of £17,000 a year once the scheme’s salary deductions are taken into account, as well as those who are not in work, self-employed, or work for a non-participating employer.
The consequence of the scheme’s minimum entry point, the charity pointed out, is that just 30 per cent of people on a low income or not in employment have access to a cycle. On the other hand, data from Sustrans’ Walking and Cycling Index found that 59 per cent of people in professional occupations have access to a bike.
The report prompted Simon Lightwood, Labour’s Parliamentary Under-Secretary of State for Transport, to admit that the government “absolutely recognises” there are “problems” with the current Cycle to Work scheme.
Cyclists in London male and female in cycle lane (credit: Simon MacMichael)
In his article in the Telegraph today, Wilkinson concluded: “It’s a good example of a policy that came with good intentions that has been allowed to mutate into something it was never supposed to be.
“Cycle to Work should not be scrapped, but ministers should consider if taxpayer cash should really be going towards fancy new toys for middle-aged men in Lycra earning six figures.”
However, despite his insistence that his criticism of Cycle to Work didn’t amount to an “anti-cyclist article”, Wilkinson’s depiction of “Lycra-clad” cyclists “tearing through red lights” has been resoundingly criticised by cyclists on social media.
“I couldn’t read it behind the paywall, I could only see the first sentence. But as that mentioned Lycra and red lights, I knew I didn’t want or need to read any more,” Christopher Day wrote in response to the Telegraph’s story.
Referring to Wilkinson’s assertions that expensive bikes are being paid by “the taxpayer”, Adespoto said: “Because cyclists and taxpayers are distinct demographics? It’s a nasty culture-wars article from a petro-industrialist Tory shit rag.”
“‘Now, let’s be clear. This isn’t an anti-cyclist article’. It absolutely is,” added Wiebes.
> "People won't bother reading the truth, the damage is done": Cyclists frustrated Telegraph newspaper not required to put "52mph cyclists creating death traps" correction on front page like original headline
Of course, as noted above, this isn’t the first time that the Telegraph has been criticised for its attitude towards cyclists.
In August, press regulator IPSO (the Independent Press Standards Organisation) ruled that the newspaper was in breach of its Editors’ Code for an inaccurate front page story claiming cyclists are riding at 52mph in London’s 20mph zones while chasing Strava segments.
Telegraph front page/ cyclists in Richmond Park (credit: Simon MacMichael/Telegraph)
The headline appeared on the newspaper’s front page last May and told readers “Lycra lout cyclists are creating death traps” and riding at 52mph in London, a bizarre claim that turned out to be the result of dodgy GPS data taken from Strava that would, if true, have meant that people are cycling through London’s streets at speeds faster than what Olympic track sprinters hit in the velodrome.
Unsurprisingly, the story was much criticised and ridiculed, Active Travel Commissioner Chris Boardman calling it “bonkers” and the IPSO receiving 96 complaints.
> "Mums, dads, sons and daughters being labelled as killers. It’s just got to stop": Chris Boardman comments on Telegraph '52mph in a 20mph zone' article as it emerges co-author is former BBC fact-checker
However, despite the IPSO’s intervention, which described the error as “significant”, many expressed frustration that the newspaper was not required to publish a front-page correction, as the regulator instead accepted that the original acknowledgement made six days after publication and hidden away in the Telegraph’s ‘Corrections and Clarifications column’ was sufficient.
But just two months after the IPSO’s intervention, the Telegraph was again accused of manipulating and blurring photos of cyclists riding at 15mph through Regent’s Park to make it look like they were travelling at faster speeds than they were, for a column titled ‘Let’s get tough on the scourge of rogue cyclists’.
And later in November, the Telegraph published information from a “dossier of collision data” from The Royal Parks in London and claimed it revealed “the full threat posed to pedestrians by dangerous and illegal cycling in the country's most famous parks”.
In the article, titled ‘How rogue cyclists in London’s parks have knocked down children and the elderly’, the Telegraph published information from the dossier and said it referenced “speeding” and “aggressive” cyclists being involved in hit and runs, ignoring zebra crossings, travelling on illegal bikes, and hitting pedestrians so hard they are “catapulted into the air”.
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94 comments
My workplace is a one of the biggest users of the c2w scheme in our city, and I can tell you now that this article in no way reflects the nature of those using it. Most of those who use it now are in the 18-40 age range. Older cyclists like me are riding bikes they bought years ago such as my 20 year-old Dawes Karakum. Furthermore, no-one turns up in lycra. It's either ordinary clothing or shorts/tracksuit bottoms/baggies with a t-shirt and cycling jacket and keep a change of clothes in work.
This is nothing more than a Tory rag doing it's usual scapegoating trick. It's either minorities, asylum seekers or cyclists. Reminds me of a story I heard of a Rabbi in Czarist Russia who was confronted by a drunken Cossack. "The whole worlds in a mess!" he shouted "and it's all the Jews' fault!" "And the cyclists" The Rabbi replied. "Why the cyclists?" asked the Cossack, puzzled at his reply. "Why the Jews?" the Rabbi replied.
How about this for negative stereotyping :
"Beige, elasticated waist trouser-clad Daily Telegraph reader, wearing brown shoes that look like Tesco Cornish Pasties and a blue and yellow rainproof jacket, ambles slowly across pelican crossing on the way to the Conservative Club.
If he had just said that the Cycle to Work scheme ain't fit for purpose, he would've been right. Rip-offs by the scheme operators; no scheme for the self-employed; bigger benefits to those paying the most tax. It needs an overhaul.
I never thought I would ever see myself agreeing with the editorial stance of the Telegraph, bit I'm afraid here they have a very valid point. Simply, the scheme is being abused by being taken advantage of by buyers using it to access expensive bicycles. It would be naive of government not to recognise the fact.
My bigger beef though is with the excessive commission charges the scheme operators are charging bike shops for administering the process. This can be up to 15% of the gross (i.e. the fee includes the vat content of the bike) cost of the bike. So, the scheme operator will take up to £150 on the sale of a £1000 bicycle, which accounts for approximately 50% of the retailer's profit. This is simply unfair and I am sure led to the demise of some independent stores who have relied heavily on their BTW sales. Halfords commission charges are probably the worst.
The ACT seem to have gone very quiet on the subject. Surely, their purpose is to protect their member's interests and in this case it is to constantly lobby the government for a wholesale review of how the scheme is administered, because at the moment it simply is not fair to retailers.
The place I got my new bike from on a C2W scheme were quite open about that and said that while they're more than happy to sell a bike being paid for on such a scheme, they would charge an extra £150 to cover the scheme fees. Given that they were explaining where the extra charge had come from, I was fine with paying it.
Most, if not all, scheme providers make it clear in their T&Cs that retailers are not allowed to surcharge to cover their scheme commission with the threat of exclusion.
A bike shop is under no obligation to sell a bike if they don't want to. If the deal doesn't work, the shop can say no. In my experience, many bike shops like the GCI scheme as it's 5% commission, and more than one LBS has remarked that it's bike scheme sales that keep the lights on during winter & spring months.
If the scheme didn't work for the retailers as you seem to think in the 26 years since it was introduced by Tony Blair's Labour government in 1999, then they would have all abstained or gone out of business by now.
The fact is that many have who have relied on the extra business BTW brings in but then find they cannot cover their overhead with significantly reduced gross margins.
I appreciate that other factors have conspired to make the viability of independent bike shops questionable, but BTW commission charges hasn't helped.
https://www.theguardian.com/lifeandstyle/2022/aug/30/why-do-some-people-...
Successive governments' lack of engagement on this sends a clear enough signal.
that “commuters simply do not need a bike worth more than £1,000”.
what?? He should see the cars that drop the kids off at the private schools round my way. The wheel rims cost at least £1000 each. And the cars are the size of a small house. And they clog up all the roads. And they pollute.
More anti-cycling bigotry from The Telegraph.
Perhaps Mr Wikinson would write an article about the social cost of cycling vs motoring. Spoiler alert - motoring is heavily subsidized by all the taxpayers.
Regardless of the gratuitously nasty tone which of course is typical of the Telegraph, Wilkinson has a point about the tax relief situation in question.
Yes, you can effectively buy yourself a £10K Pinarello with £420 off the price if you're a higher rate taxpayer. And that's pretty obscene imo.
The easy way around that would be to make the tax relief a fixed rate of 20%, and to also introduce a cap over which you receive no tax relief. Say, £3K?
And then the govt could perhaps even find a way of using the saved money to assist low paid workers in buying a modest bike to commute on.
The current system is simply too blunt an instrument.
Don't you mean with 4,200 off the price rather than 420?
Well...
He's right on the system being totally abused. At the beginning their was an upward limit of £1000 of the amount you could finance with the scheme. Now a days plenty of my cycling friend buy fancy bikes with it but you won't see any of these bikes on your commute. They still use the train or worse, drive to work while their bike is only for weekend rides.
You can barely buy a bike worth riding for £1000.
Nonsense. I'm looking at replacing my road bike once I'm back in the saddle (fell off on diesel and ended up with a hip replacement) and my budget is around £800. There are loads of perfectly good bikes within that range. Attitudes like this (like the comparable 'can't get a playable guitar under £1000', 'can't get a decent camera under £3000') just make people think they can't afford to cycle.
Well said - slightly above your budget but the Triban RC520 with Shimano 105 at £899 is as much bike as 90% of riders are really ever going to need and there are plenty of other lovely bikes still in three figures.
thats rubbish, I got a perfect hybrid commute bike for under 500quid last year, big brand manufacturer, hydraulic disc brakes.
your next bike doesnt have to be made of carbon or have electric gear change
even when the limit was there, & note some schemes still enforce it, there was probably as much abuse of the setup, ie people just buying bikes and not using them to commute, as there is now, I remember some of the guidance we got when our scheme started that TT bars were not acceptable accessories to add to the bike
If someone wants a bike for commuting that they can also use on their weekend triathlons and is using their commute as training, why not? The logical extension of that would be to say no road bikes, flat bar hybrids only.
Never mind 52 mph: I briefly managed 602,913 km/h.
Only 3 x kudos? I suppose you were only riding for 10 seconds 😂
Please send me your aero position and bike kit tips.
They were using L-shaped cranks.
If you’re a dentist earning £200000, you'll be paying about £83000 a year in tax, I'll sleep ok if they're getting 4 of that back on a bike
More than that, because that £200,000 income removes their tax allowance. Effectively making it 52% tax, to be handed to Thames Water directors.
I think it's worth pointing out that (as many people don't seem to realise) around 60% of income tax revenue comes from the top 10% of earners, and you only have to earn around £65k per annum to be in that top 10%. So yeah, a tax break to buy a salary sacrifice bike which (assuming it gets ridden) will contribute to overall fitness and good health isn't necessarily a bad thing, and definitely not depriving the exchequer of funds, particularly as VAT on the bike is still paid. These notional £10k bikes with £4200 "discount", given the reduction in net pay, aren't being bought by people at the lower end of the salary scale. If anyone is buying these, they're already paying large amounts of money in tax.
Personally I don't have a problem with paying the tax I'm required to, my two children went through a state funded education, my wife works in the public sector (teacher in a state school), and we all need the NHS & other services to be paid for. But when it came to buying an ebike so I could leave the van at home on office days, I didn't think twice about getting through a C2W scheme.
https://articles.obr.uk/income-tax-and-the-earnings-distribution/index.html
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsan...
Have to say I agree with the article but not how it's written. The country needs people to pay their fair share and salary sacrifice is robbing the state of funds. The scheme should be available to the lower paid or a tax reduction on cheaper machines.
It was only recently there was an article about the rising cost of cycling. Surprisingly this may be due to the C2w scheme as other similar government funded schemes only seem to line the pockets of the suppliers.
I was talking to a fund manager at the gym and he said his firm allowed a max of £12k for a bike and equipment. This is just giving rich people the opportunity to cut costs at the taxpayers expense. My current employer is offering £5k which is bonkers too.
By all means help out the lower paid workers with a bike but those of us who earn more can afford to pay. Don't even get me onto the subject of salary sacrifice cars..... What a joke.
Exactly.
A decent Ebike, lights, clothing, helmet, arguably cameras if you're commuting, a decent lock etc and you won't have a huge chunk of change from £5k. Agree that £12k is extracting the liquid waste product, though.
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